Issue of share options to Directors

11 January 2016

Applied Graphene Materials plc

("Applied Graphene Materials", "the Group" or "the Company")

Issue of share options to Directors

Applied Graphene Materials announces that share options over ordinary shares of 2 pence each in the Company were granted today on 11 January 2016 to the following Directors under the terms of the Company's Non-Approved Executive Option Scheme ("Non-Approved"):

The vesting of Non-Approved options is subject to the relative performance of the Company's share price, compared to the FTSE AIM All Share Index, for the period from the date of grant to November 2018.

In the event that the Company's share price performs better than the FTSE AIM All Share Index for the performance period, then 25% of the options will vest. Further vesting will be dependent upon the extent to which the Company's share price outperforms the FTSE AIM All Share Index, with full vesting arising for performance exceeding the benchmark by 25%. Percentage vesting is weighted towards the upper parts of the vesting scale. Performance will be measured using the one month average Company share price and FTSE AIM All Share Index value in the period prior to the end of the performance period, compared to a starting position of £1.83 per share and 728.9 respectively.

Subject to vesting, the options would be exercisable in the period between November 2018 and January 2026. Nil consideration is payable in respect of either the grant or exercise of these options.

Ends

For further information, please contact:

Applied Graphene Materials +44 (0) 1642 438 214

Jon Mabbitt, Chief Executive Officer

Oliver Lightowlers, Chief Financial Officer

N+1 Singer +44 (0) 207 496 3000

Shaun Dobson / Richard Lindley

Hudson Sandler +44 (0) 207 796 4133

Charlie Jack / Emily Dillon

Notes to Editors

Applied Graphene Materials was founded by Professor Karl Coleman in 2010 with its operations and processes based on technology that he initially developed at Durham University. The Group was admitted to AIM in November 2013, raising £11 million, and is based at the Wilton Site on Teesside.

The Group has developed a proprietary bottom-up process which is capable of producing high purity graphene nanoplatelets using a continuous process. The manufacturing process is based on sustainable, readily available raw materials and therefore does not rely on the supply of graphite, unlike a number of other graphene production techniques. Applied Graphene Materials owns the intellectual property and know-how behind this process.

Applied Graphene Materials works in partnership with its customers using its knowledge and expertise to provide bespoke graphene dispersions and formats to deliver enhancements and benefits for a wide range of applications.